Question 1

Explain the principle of exception and describe how it can help in comparing performance with the standard.

Accepted Answer

The answer of Explain the principle of exception and describe...

Question 2

A control system cannot be effective without consideration of how people will react to it.

Accepted Answer

A) True 
 B)False  True

Question 3

A ratio of profit to capital used,or a rate of return from capital,is referred to as ____.

Accepted Answer

A)   the debt-equity ratio
B)   the leverage ratio
C)   return on investment
D)   net working capital
E)   transfer priceF) A) and B)
G) B) and C)

Question 4

One of the reasons standards are established is to set performance expectations.

Accepted Answer

A) True 
 B)False

Question 5

To be effective,control systems must:

Accepted Answer

A)   keep performance standards flexible and easy.
B)   focus on one-way top-down communication.
C)   be acceptable to all stockholders.
D)   use multiple control approaches.
E)   centralize decision making.F) A) and C)
G) A) and B) D

Question 6

In contrast to bureaucratic controls,market controls involve the use of:

Accepted Answer

A)   rules and regulations.
B)   economic forces.
C)   authority.
D)   autocratic power.
E)   norms.F) B) and C)
G) A) and E)

Question 7

The profit and loss statement is an itemized financial statement of the income and expenses of a company's operations.

Accepted Answer

A) True 
 B)False

Question 8

The balance sheet shows the financial picture of a company over time.

Accepted Answer

A) True 
 B)False

Question 9

_____ budget is used for the cost of fixed assets,such as plants and equipment,that are usually treated not as regular expenses but as investments.

Accepted Answer

A)   Master
B)   Cash
C)   Capital
D)   Production
E)   SalesF) B) and E)
G) C) and E)

Question 10

The activity-based costing system:

Accepted Answer

A)   is more appropriate method of cost accounting for rigid hierarchical organizations.
B)   effectively departmentalizes an organization based on its core functions such as human resources,purchasing,and maintenance.
C)   provides a more accurate picture of how costs should be charged to products and services.
D)   assumes that organizations are bureaucratic "machines" that can be separated into component functions.
E)   fails to allocate costs across business processes and is less effective than traditional methods of cost accounting.F) A) and B)
G) D) and E)

Question 11

The effective use of clan control is associated with employee ____.

Accepted Answer

A)   bureaucracy
B)   manipulation
C)   empowerment
D)   dissatisfaction
E)   unionizationF) A) and B)
G) B) and C)

Question 12

Personal observation involves going to the area where activities take place and watching what is occurring.

Accepted Answer

A) True 
 B)False

Question 13

External audits are generally used for:

Accepted Answer

A)   assessing what the company has done for itself.
B)   evaluating production efficiency.
C)   evaluating sales effectiveness.
D)   investigating possible targets for mergers or acquisitions.
E)   assessing what the company has done for its customers.F) C) and D)
G) A) and B)

Question 14

Return on investment is a profitability ratio.

Accepted Answer

A) True 
 B)False

Question 15

Jeremy is in charge of production at Tech Farm Equipment.His job responsibilities include eliminating defects in the equipment parts the factory produces.However,he has advised his crew to alert him only when defects exceed 200 per million,which he considers a serious deviation from standards.In this case,Jeremy is using:

Accepted Answer

A)   a management audit.
B)   the principle of deviation.
C)   clan control.
D)   the principle of exception.
E)   behavioral standards.F) B) and D)
G) B) and E)

Question 16

An example of feedforward control is managers monitoring their distributors.

Accepted Answer

A) True 
 B)False

Question 17

Periodically assessing a company's own planning,organizing,leading,and controlling efforts is the essential function of ____.

Accepted Answer

A)   strategic audits
B)   feedforward control
C)   feedback control
D)   competitive audits
E)   internal auditsF) A) and E)
G) A) and B)

Question 18

In contrast to market controls,bureaucratic controls involve the use of economic forces to regulate performance.

Accepted Answer

A) True 
 B)False

Question 19

On which of the following would Linda be working?

Accepted Answer

A)   Balance sheet
B)   Assets
C)   Liabilities
D)   Stockholders' equity
E)   Profit and loss statementF) B) and E)
G) C) and E) A

Question 20

A master budget includes every major activity of a business.

Accepted Answer

A) True 
 B)False

Exam 16: Managerial Control

Explain the principle of exception and describe how it can help in comparing performance with the standard.

Correct Answer
verified

A control system cannot be effective without consideration of how people will react to it.

Correct Answer
verified
True

A ratio of profit to capital used,or a rate of return from capital,is referred to as ____.

Correct Answer
verified

One of the reasons standards are established is to set performance expectations.

Correct Answer
verified

To be effective,control systems must:

Correct Answer
verified
D

In contrast to bureaucratic controls,market controls involve the use of:

Correct Answer
verified

The profit and loss statement is an itemized financial statement of the income and expenses of a company's operations.

Correct Answer
verified

The balance sheet shows the financial picture of a company over time.

Correct Answer
verified

_____ budget is used for the cost of fixed assets,such as plants and equipment,that are usually treated not as regular expenses but as investments.

Correct Answer
verified

The activity-based costing system:

Correct Answer
verified

The effective use of clan control is associated with employee ____.

Correct Answer
verified

Personal observation involves going to the area where activities take place and watching what is occurring.

Correct Answer
verified

External audits are generally used for:

Correct Answer
verified

Return on investment is a profitability ratio.

Correct Answer
verified

Correct Answer
verified

An example of feedforward control is managers monitoring their distributors.

Correct Answer
verified

Periodically assessing a company's own planning,organizing,leading,and controlling efforts is the essential function of ____.

Correct Answer
verified

In contrast to market controls,bureaucratic controls involve the use of economic forces to regulate performance.

Correct Answer
verified

On which of the following would Linda be working?

Correct Answer
verified
A

A master budget includes every major activity of a business.

Correct Answer
verified

Exam 16: Managerial Control

Explain the principle of exception and describe how it can help in comparing performance with the standard.

Correct AnswerverifiedShow Answer

A control system cannot be effective without consideration of how people will react to it.

Correct AnswerverifiedTrue

A ratio of profit to capital used,or a rate of return from capital,is referred to as ____.

Correct AnswerverifiedShow Answer

One of the reasons standards are established is to set performance expectations.

Correct AnswerverifiedShow Answer

To be effective,control systems must:

Correct AnswerverifiedD

In contrast to bureaucratic controls,market controls involve the use of:

Correct AnswerverifiedShow Answer

The profit and loss statement is an itemized financial statement of the income and expenses of a company's operations.

Correct AnswerverifiedShow Answer

The balance sheet shows the financial picture of a company over time.

Correct AnswerverifiedShow Answer

_____ budget is used for the cost of fixed assets,such as plants and equipment,that are usually treated not as regular expenses but as investments.

Correct AnswerverifiedShow Answer

The activity-based costing system:

Correct AnswerverifiedShow Answer

The effective use of clan control is associated with employee ____.

Correct AnswerverifiedShow Answer

Personal observation involves going to the area where activities take place and watching what is occurring.

Correct AnswerverifiedShow Answer

External audits are generally used for:

Correct AnswerverifiedShow Answer

Return on investment is a profitability ratio.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An example of feedforward control is managers monitoring their distributors.

Correct AnswerverifiedShow Answer

Periodically assessing a company's own planning,organizing,leading,and controlling efforts is the essential function of ____.

Correct AnswerverifiedShow Answer

In contrast to market controls,bureaucratic controls involve the use of economic forces to regulate performance.

Correct AnswerverifiedShow Answer

On which of the following would Linda be working?

Correct AnswerverifiedA

A master budget includes every major activity of a business.

Correct AnswerverifiedShow Answer

Correct Answer
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True

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D

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A

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